FTSE Today: DS Smith soars on merger talks, CMC Markets upgrades guidance

Stocks in London closed in positive territory on Wednesday ahead of Friday's key inflation reading from the US.

DS Smith shares surged 8.7% after confirming talks with International Paper regarding a potential all-share takeover offer. The proposed terms value each DS Smith share at 415 pence, equating to around £6.2 billion for the company. Discussions with Mondi will also continue following their prior deal agreement.

Diploma climbed 9.5% on announcing plans to acquire Peerless Aerospace Fastener for £236 million, expected to be completed in the coming weeks after regulatory clearances. The US-based firm distributes speciality fasteners into aerospace markets.

TI Fluid Systems plunged 15% as investor BC Omega Holdco sold 50 million shares at a discounted 135p each, raising £67.5 million.

Bucking the trend, CMC Markets surged 17% after guiding for full-year net operating income to exceed the top end of its £290-310 million range, up from £288.4 million last year. Analyst Vivek Raja cited the "significant effect of operating leverage" driving the upgrade.

The FTSE 100 closed marginally higher at 7,931.98, while the FTSE 250 added 0.2% to 19,810.66. The AIM All-Share rose 0.4% to 742.11.

Daily Risers and Fallers

Daily Recap

• CMC Markets soars on upbeat outlook after strong Q4
• Investor offloads stake in TI Fluid Systems, shares plummet
• UK facing 'sliding doors' moment with generative AI, millions of jobs at risk
• International Paper aims to disrupt DS Smith-Mondi merger with counterbid
• Old Mutual shares jump on good 2023 performance
• Strix shares drop despite revenue boost from Billi acquisition
• Bitcoin rally batters short sellers
• Gold steadies as traders await US inflation data, Fed speak

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